IPOs in New Zealand: Nonfinancial disclosures,valuation, and short-term performance |
| |
Institution: | Department of Economics and Finance, University of Canterbury, Christchurch 8140, New Zealand |
| |
Abstract: | This study examines the effects of offer characteristics and prospectus disclosures of nonfinancial information on the valuation at the offer and the short-term performance of NZX-listed IPOs over the period 1991–2017. Compared with sector/industry–matched peers, the median IPO is overvalued by 39% at the offer, and more overvalued IPOs do not achieve higher cumulative abnormal returns (CARs) within the first year post-listing. IPOs purchased at the offer yield first-day average abnormal return of 3.4%–3.8% and one-year average CARs of 3.54%–6.21%. Determinants of valuation and short-term performance include the time gap between prospectus registration and offer open, float rate, investment bank reputation, and prospectus disclosures of an employee share ownership plan or a people-focused culture. |
| |
Keywords: | |
本文献已被 ScienceDirect 等数据库收录! |
|